Council adopts 6% municipal energy tax; city plans cemetery committee and holding fund

Marriott-Slaterville — The council approved an ordinance to collect a 6% municipal energy sales and use tax, directing revenue to grant-matching and to create a city cemetery fund.

Staff explained the city had previously set a 3% municipal energy tax but the State Tax Commission’s systems had defaulted to 6%. "The state is so used to all of the cities doing it at 6% ... they just put it in the computer at 6," Bill said, adding the city had received the excess collections and is working with the Tax Commission on a rebate for the nine months in question. He told the council the budget was calculated using a 6% assumption and that keeping the tax at 6% supports both the cemetery fund and grant-matching needs.

Public commenters included Steven Meekum, who identified himself as a long-time advocate for a city cemetery: "We need a cemetery," Meekum said, urging the council to fund the project. Councilors said the extra 3% could be kept within the city rather than creating a separate service district; staff described a cemetery committee (Steve, Rod Huffstetler and Darren Erwin) that will research options and report back to the council.

Staff estimated municipal energy receipts run about $10,000 a month from electricity in summer and about $5,000 from gas in winter, saying the combined figure is roughly $15,000 a month and that the cemetery might need roughly $50,000 a year to operate (figures given as estimates). The council discussed tax optics and reliance on large commercial users (warehouses) that pay a significant share of the energy tax.

Ordinance 20-26-07 passed on a roll-call vote. Staff said the tax commission’s review of the earlier over-collection is pending and that any rebates will be handled by the State Tax Commission.

Next steps include cemetery-committee research and a future council decision on the cemetery committee’s recommendation for whether to develop a full cemetery or another funding path.